TORONTO (Reuters) - Canada’s dollar was little changed against its U.S. counterpart on Wednesday with the currency stuck in a tight trading pattern as investors awaited any resolution on a second Greek bailout.
Greek leaders are due to meet on Wednesday to agree a deal on painful austerity steps needed to secure a 130 billion euro ($172 billion) rescue from the IMF and European Union and avoid a messy debt default.
“The market seems to have its focus squarely on headlines out of Greece,” said Matt Perrier, a director of foreign exchange sales at BMO Capital Markets.
“It’s very lackluster. We’re waiting for something to happen here.”
Around 7:40 a.m. (1240 GMT), the Canadian dollar was at C$0.9952 to the U.S. dollar, or $1.0048, a hair lower from its finish on Tuesday at C$0.9948 to the U.S. dollar, or $1.0052.
Perrier said the Canadian dollar has been trapped in a narrow trading range in the past few sessions. With little domestic data to drive it either way, he expects the currency to be stuck between C$0.9928 and C$0.9995 against the greenback.
”Any sort of good news is already priced into the market. “We’re apt to see buy the rumor, sell the fact, if we do get something concrete hitting the wires today,” he added.
Canadian bond prices were mostly lower in tandem with U.S. Treasuries, with the two-year bond down 4 Canadian cents to yield 1.062 percent. The 10-year bond slipped 20 Canadian cents to yield 2.059 percent.
Reporting By Jennifer Kwan; Editing by Chizu Nomiyama